CHAPTER XI
AMENDMENTS TO THE FINANCE ACT, 2017
Amendment of Act 7 of 2017.
12. In the Finance Act, 2017 (hereinafter refered to as the Finance Act),-
(i) for section 184, the following section shall be substituted, namely:-
Qualifications, appointment, etc., of Chairperson and Members of Tribunal.
'184. (1) The Central Government may, by notification, make rules to provide for the qualifications, appointment, salaries and allowances, resignation, removal and the other conditions of service of the Chairperson and Members of the Tribunal as specified in the Eighth Schedule:
Provided that a person who has not completed the age of fifty years shall not be eligible for appointment as a Chairperson or Member:
Provided further that the allowances and benefits so payable shall be to the extent as are admissible to a Central Government officer holding the post carrying the same pay:
Provided also that where the Chairperson or Member takes a house on rent, he may be reimbursed a house rent subject to such limits and conditions as may be provided by rules.
(2) The Chairperson and Members of a Tribunal shall be appointed by the Central Government on the recommendation of a Search-cum-Selection Committee (hereinafter referred to as the Committee) constituted under sub-section (3), in such manner as the Central Government may, by rules, provide.
(3) The Search-cum-Selection Committee shall consist of-
(a) the Chief Justice of India or a Judge of Supreme Court nominated by him-Chairperson of the Committee;
(b) two Secretaries nominated by the Government of India-Members;
(c) one Member, who-
(i) in case of appointment of a Chairperson of a Tribunal, shall be the outgoing Chairperson of the Tribunal; or
(ii) in case of appointment of a Member of a Tribunal, shall be the sitting Chairperson of the Tribunal; or
(iii) in case of the Chairperson of the Tribunal seeking re-appointment, shall be a retired Judge of the Supreme Court or a retired Chief Justice of a High Court nominated by the Chief Justice of India:
Provided that, in the following cases, such Member shall always be a retired Judge of the Supreme Court or a retired Chief Justice of a High Court nominated by the Chief Justice of India, namely:-
(i) Industrial Tribunal constituted by the Central Government under the Industrial Disputes Act, 1947 (51 of 1947.);
(ii) Tribunals and Appellate Tribunals constituted under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993;
(iii) Tribunals where the Chairperson or the outgoing Chairperson, as the case may be, of the Tribunal is not a retired Judge of the Supreme Court or a retired Chief Justice or Judge of a High Court; and
(iv) such other Tribunals as may be notified by the Central Government in consultation with the Chairperson of the Search-cum-Selection Committee of that Tribunal; and
(d) the Secretary to the Government of India in the Ministry or Department under which the Tribunal is constituted or established-Member-Secretary.
(4) The Chairperson of the Committee shall have the casting vote.
(5) The Member-Secretary of the Committee shall not have any vote.
(6) The Committee shall determine its procedure for making its recommendations.
(7) The Central Government shall take a decision on the recommendations of the Committee preferably within three months from the date on which the Committee makes its recommendations to the Government.
(8) No appointment shall be invalid merely by reason of any vacancy or absence in the Committee.
(9) The Chairperson and Member of a Tribunal shall be eligible for re-appointment in accordance with the provisions of this section:
Provided that in making such re-appointment, preference shall be given to the service rendered by such person.
(10) The Central Government shall, on the recommendation of the Committee, remove from office, in such manner as may be provided by rules, any Member, who-
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such a Member; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest:
Provided that where a Member is proposed to be removed on any ground specified in clauses (b) to (e), he shall be informed of the charges against him and given an opportunity of being heard in respect of those charges.
Explanation.-For the purposes of this section, the expression-
(i) “Tribunal” means a Tribunal, Appellate Tribunal or Authority as specified in column (2) of the Eighth Schedule;
(ii) “Chairperson” includes Chairperson, Chairman, President and Presiding Officer of a Tribunal;
(iii) “Member” includes Vice-Chairman, Vice-Chairperson, Vice-President, Account Member, Administrative Member, Judicial Member, Expert Member, Law Member, Revenue Member and Technical Member, as the case may be, of a Tribunal.;
(ii) in section 184 as so substituted, after sub-section (10) and before the Explanation, the following sub-section shall be inserted and shall be deemed to have been inserted which effect from the 26th May, 2017, namely:-
“(11) Notwithstanding anything contained in any judgment, order, or decree of any court or any law for the time being in force,-
(i) the Chairperson of a Tribunal shall hold office for a term of four years or till he attains the age of seventy years, whichever is earlier;
(ii) the Member of a Tribunal shall hold office for a term of four years or till he attains the age of sixty-seven years, whichever is earlier:
Provided that where a Chairperson or Member is appointed between the 26th day of May, 2017 and the notified date and the term of his office or the age of retirement specified in the order of appointment issued by the Central Government is greater than that which is specified in this section, then, notwithstanding anything contained in this section, the term of office or age of retirement or both, as the case may be, of the Chairperson or Member shall be as specified in the order of appointment subject to a maximum term of office of five years”.
